[News Article] Samsung SDI, GM to form EV battery alliance
Samsung SDI, GM to form EV
battery allianceBy Kan Hyeong-woo, The Korea Herald
- South Korean battery maker Samsung SDI and US auto giant General Motors will
build a joint battery manufacturing plant for electric vehicles in the US with
an investment worth up to 5 trillion won ($3.8 billion), according to reports
Sunday.
The battery alliance, which
will mark the first collaboration between the two companies, will become
official later this week as they are expected to sign a memorandum of
understanding in Michigan on Wednesday.
Citing unnamed industry
sources, the reports said the two sides are undergoing last-minute negotiations
for details in the agreement such as the production volume of the joint EV
battery factory, the investment method and the location of the plant. The
companies are projected to break ground for the joint factory at the end of
this year and the plant is expected to start producing prismatic and
cylindrical battery cells in 2026.
The capacity of the joint plant
is estimated between 30 to 50 gigawatt-hours per year. The annual capacity of
50 GWh is enough to produce 600,000 or more EVs annually.
Regarding the reports on the
joint project with GM, a Samsung SDI official told The Korea Herald that the
company could not provide any comment on matters related to its customers.
When LG Energy Solution and GM
reportedly halted their plan to build a fourth EV battery plant in the US in
January, automotive and battery industry insiders already pointed to Samsung
SDI as the alternative option for the US automaker.
The GM partnership is Samsung
SDI’s second joint project in North America after the Korean battery maker
announced the plan to build a $2.5 billion battery plant in Indiana with
Stellantis last May. The Indiana factory is expected to begin operation in the
first quarter of 2025 with an annual production capacity of 23 GWh.
The latest partnership shows
the trend of the battery industry expanding its customer pool instead of
sticking with just one automaker and global carmakers looking to secure stable
battery supplies as they dial up their EV production to cope with the US
Inflation Reduction Act that provides $7,500 subsidies per EV.
LG Energy Solution, Korea’s
leading battery maker by sales volume, has joined hands with GM, Stellantis,
Honda, Hyundai Motor Group and Ford while Samsung SDI now has partnerships with
Stellantis and GM. Another Korean battery maker SK On is collaborating with
Ford and Hyundai Motor Group.
Source: www.koreaherald.com/view.php?ud=20230305000112
2023.03.06
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